HighTower has made a strategic investment in Lexington Wealth Management (LWM), an advisory group that serves entrepreneurs, executives, professionals, affluent women, high-net-worth individuals and families.
LWM, which has USD1 billion in assets under advisement, focuses on helping clients navigate life events by understanding the emotional aspects of their financial decisions. This aligns with HighTower’s mission to support advisors, empowering them to help their clients achieve their wealth aspirations.
Founded in 2000 by Michael Tucci and Kristine Porcaro, the group has 17 employees, including 11 advisers. The practice plans to grow its client base, expand through acquisitions and scale the business.
“Lexington is a progressive advisory business with a keen sense of purpose and commitment to client care. Its independent spirit and dedication to thinking differently have been keys to its success,” says Bob Oros, CEO of HighTower. “We view the addition of LWM as a key anchor in a very attractive market. The combination of their growth orientation along with access to HighTower’s scale, sophistication and capital is a powerful formula. We’re honored to welcome the LWM team to HighTower, and look forward to helping them grow their business to serve more clients in the Boston area and beyond.”
LWM chose to join HighTower after considering strategic partnerships with a number of other entities, including banks, private equity and wealth management firms. They were drawn to HighTower’s entrepreneurial culture, comprehensive middle- and back-office operational infrastructure and collaborative community.
“HighTower’s culture, operations and capital will allow us to grow, both organically and through acquisitions, while freeing up time to deepen our client relationships, enhance our business focus and enable us to serve more clients now and in the future,” says Tucci, LWM’s CEO. “We’re looking forward to joining a community of nearly 100 advisory businesses across the U.S., with whom we can collaborate, share ideas and knowledge.”
“HighTower not only supports our culture and individuality, it celebrates it. They will help us amplify our brand: ‘Connecting the Head and the Heart of Wealth Management,'” says Porcaro, LWM’s President. Porcaro and Tucci were attracted to Bob Oros’ leadership, having known him for some time. “Bob’s approach to supporting advisory businesses and their clients inspired us to join HighTower.”
LWM is HighTower’s 24th external RIA transaction since inception and its third in 2019. Including the LWM transaction, HighTower now has 99 advisory businesses in 33 states. HighTower advisors oversee approximately $70.3 billion in total client assets (as of 30 June).
The LWM transaction follows HighTower’s strategic investments earlier this year in LourdMurray and Green Square Wealth Management, and, in the last two years, WealthTrust and Salient Private Client (now HighTower Texas), including Salient Private Client’s trust group.
HighTower offers independent-minded advisory businesses a capital-rich partner and customisable suite of services designed to help accelerate growth. In addition to capital, HighTower provides an advanced, integrated advisor platform – including technology, compliance, accounting, payroll, human resources, investment research/due diligence and marketing services. Advisory groups that partner with HighTower also gain access to a collaborative culture, economies of scale and deep industry relationships.
HighTower is backed by Boston-based private equity firm Thomas H Lee Partners, which is providing funding for the company to make strategic investments and acquisitions in the RIA space, expand the firm’s services to advisors and advance growth.
LWM was advised on the transaction by Raymond James | Silver Lane Advisors. The transaction is expected to close in the third quarter of 2019, subject to regulatory approvals and other customary closing conditions.